CDA cancels contract of Kashmir Highway toll plaza construction

The Capital Development Authority (CDA) has cancelled the contract of the Kashmir Highway toll plaza construction and took over the operational control of the toll plaza due to non-compliance of contractual obligations by the contractor. Besides various other contractual violations, the contractor was not paying build, operate and transfer (BoT) fee since January 1, 2009, said a statement of the CDA here on Wednesday.
The contract of construction of the poll plaza near Golra Morr was awarded to Signage System on BoT basis for five years with effect from November 22, 2007. The statement said that the purpose of grant of work to the firm on BoT basis was to facilitate the commuters and to provide them with a state of the art, tolling services.
As per the agreement, the work was supposed to be completed within nine months, including six months civil work and then installation of equipment within next three months, however, the contractor committed serious violations of the agreement like non-submission of monthly BoT fee, stoppage of construction work and non-installation of electronic equipment etc in the given time, it added.
Despite giving notices, the concessionaire failed to deposit the outstanding dues and completion of development work as per contractual obligation. However, the operation of toll plaza was taken over by CDA with effect from midnight of June 302009, it said.
Meanwhile, the CDA has submitted the environmental audit of the Kashmir Highway widening project to Pakistan Environmental Protection Agency (Pak EPA) after holding public hearing. As per requirement a Pak EPA Act (1997), the EIA was necessary to be submitted to the agency for assuring the environmental requirements of the project. To fulfil the legal requirements, public hearing was arranged on June 30, which was chaired by Pak EPA Director Zia-ul-Islam.
CDA Project Director Rimmal Jamil gave the detailed briefing on the project, besides head of Environment Nespak Irfan-ul-Haq gave presentation on the EIA. Zia also appreciated the efforts of the CDA to have the EIA of this project before the commencement of the project fulfilling all the legal requirements.